Private Landlords fear effects of Housing Benefit changes

•        “Better middle aged tenants wanting to rent.”

•        “Void periods have been reduced over the last 3 months and there is a higher selection of quality tenants available.”

•        “I believe that the B2LET market is even stronger as we move forward this year. The right property in the right location will give the tenant value for money.”

•        “I’m getting more rent than last year; and now more than my erstwhile agents told me to expect – doing it myself (with the help of Upad) is a double winner.”

While from those who said they felt less confident, comments included:

•        “Lower DSS payments, GCT rise, people paid less.  With property in the London market, I am finding it generally slower to rent my properties.”

•        “With new caps on LHA rental values there will be social tenants heading for the street causing downward price pressure across the board.”

•        “LHA has not been fully explained so I am not sure how this will impact on me.”

•        “My worry is of a double dip recession.”

James Davis, Upad’s CEO, commented: “We expect to see increased demand for rental property throughout the second half of this year. Fears of a ‘double–dip’ recession and of interest rate rises, coupled with worries about employment, will mean that renting becomes a lifestyle choice for many people.

“But the capping of housing benefit announced by the Chancellor in the Budget cause a genuine dilemma for landlords who’ve built socially responsible businesses around letting to the social sector. They are now faced with a stark choice: see their incomes vanish or evict their tenants.

“This is not just a problem in London and the South-East; we’re hearing from landlords in the North who have exactly the same concerns. We are going to see an increasing number of social tenants forced out of their homes and into cheap ‘social housing ghettoes’, unless the Government reconsiders how its policies are to be implemented.”

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